Ireland Wants EU To Make Treaty Changes To Protect Tax Rate
Tuesday September 20 2011 | 07:45 AM
The Irish government continues to demonstrate its commitment to the country's low rate of corporate tax, with officials requesting the European Union (EU) to offer a legal pledge that Ireland will retain control over the rate.
The Financial Times claims to have seen a written request from the Irish ambassador to the EU presidency, asking that a protocol be added to the impending accession treaty with Croatia. According to the FT, the letter includes the full text of a draft protocol, designed to stipulate that Irish jurisdiction over its tax rate will not come under threat.
The paper cites Ireland's European affairs minister, Lucinda Creighton, as having reinforced the government's desire to see the controversial 12.5% tax kept in place. She said that it "has been a cornerstone of our industrial policy, is an integral part of our international brand, and is critical to supporting our economic recovery and employment growth".
The protocol would need to be ratified by each of the EU's national parliaments, and the FT believes it would come into force in 2013. The presidency has confirmed that the letter was received. The Croatian treaty is likely to be completed by December this year.
Article compliments Tax News
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